Fiscal representation Germany-A brief


If you are a company doing business in Germany and your work involves imports and exports then it is recommended that you go for fiscal representation in Germany because the representative becomes your single point of contact for handling all your VAT affairs in European Union and neighboring countries because these representatives are linguists and tax experts so that solves your language problem and you need not to acquire the knowledge of complex tax laws.


Hiring a fiscal representative is one’s own choice in Germany unlike certain other countries where a representative is compulsory but I recommend representatives for companies who are importing goods from a third country.


Fiscal representatives in Germany start their work of at the stage of registration itself and help you get VAT registered and then they start taking care of your company’s VAT compliance. The representative also helps you when you want a tax refund or you want to handle the matter in case of retroactive VAT payment. German laws regarding retroactive correction of invoices are often debated and under judicial scrutiny therefore the representative becomes important as he can help you file a correct invoice in the correct method according to the law. So far the status is that retroactive VAT deduction is allowed after the invoices are rectified. A representative also handles VAT returns. Infact a fiscal representative files his own VAT return with his own VAT registration number and his return includes the taxes of all foreign companies represented by him and the foreign company which is doing business with Germany does not have to register in Germany or fulfill any obligations as far as German tax authorities are concerned.

Fiscal representation in Germany helps and representatives have to submit a summary report by the tenth day after expiry of an year and this report has to be furnished unless and until the representative gains an exemption. A representative gains an exemption in the case when the total turnover of the companies that he represents does not exceed an amount X when looking at the figures of the last year and also when the figures are not expected to cross the mark X is the year that is going on. In order to prove the same the representative has to furnish details by using a duplicate invoice submitted to him by companies which are represented.


Another duty of a representative is that he should separately show the tax free turnover of each company he represents along with the name and address of each of the companies. This record should be separated under the three headings which are intra community deliveries, export shipments and intra community deliveries.


Now that we have seen the role of a fiscal representative let us look at who all can act as representatives. Mostly tax consultants, lawyers and accountants can act as representatives along with some commercial companies when they can provide support in making custom declarations.


Having a fiscal representative leaves you more time to invest on your core business.